ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Supply shifters include (1) prices of factors of production, (2) returns from alternative activities, (3) technology, (4) seller expectations, (5) natural events, and (6) the number of sellers.

Detailed explanation-2: -The 5 Determinants of Demand The price of the good or service. The income of buyers. The prices of related goods or services-either complementary and purchased along with a particular item, or substitutes bought instead of a product. The tastes or preferences of consumers will drive demand.

Detailed explanation-3: -a. Price. Price can be understood as what the consumer is willing to pay to receive a good or service. b. Cost of production. The supply of a product and the cost of production is adversely related to each other. c. Technology. d. Governments’ policies. e. Transportation condition. 21-Oct-2021

Detailed explanation-4: -Production cost: Since most private companies’ goal is profit maximization. Technology: Technological improvements help reduce production cost and increase profit, thus stimulate higher supply. Number of sellers: More sellers in the market increase the market supply. Expectation for future prices: